Tricks to Improve Your Refinance Rate

In today’s real estate market, refinance loan rates are hovering at historical lows, with the average being in the 4% range. For millions of homeowners the potential savings on their home mortgage by refinancing into a new loan and securing a lower rate are extremely enticing. Who doesn’t want to save a couple hundred a month, or thousands of dollars over the life of the loan? Of course, there are times when you think you can get a great rate only to discover that your finances aren’t what you hoped or your home didn’t appraise for quite enough, and you’re stuck with a higher rate. Rather than dealing with this disappointment, here are a few things you can do to increase your chances of getting a better rate for your refinance.   Using Your Resources to Compare Refinance Rates How to Hit the Jackpot by Lowering your Rate How are Homeowners Receiving Low Refinance Rates? Your Credit Score: Get Clear on Your Finances When you apply for a refinance to get lower refinance loan rates, the bank is going to want to know your entire financial situation. They need the ins and outs of your financial history, your assets, your credit report, your credit score, your job history, and more. It’s your job to make sure all of this is in place before you apply for a refinance. A good place to start is with your credit report. Contact the reporting agencies and get a report from each one so you know what is showing up on your history, and whether or not you can get anything off....

What should I do, FHA or Conventional?

In the real estate market nearly all home loans are given through conventional lenders or those that have been approved by FHA. Conventional lenders follow the underwriting guidelines of Freddie Mac and Fannie Mae and they are not tied to the government programs. These underwriters are, however, subsidized by the government. FHA lenders follow the underwriting guidelines of the federal government and are much more lenient in their initial requirements for a homeowner to secure a loan or to refinance an existing loan. Between the two of them, they keep the real estate market functioning as it does today. As a homeowner, you’re probably thinking about refinancing, you may be wondering if you should have FHA refinance your mortgage. While this can be a great idea, there are some pros and cons that you should be aware of. The Secret to FHA No Costs Refinance Smart Steps to Take When Refinancing Your Loan What is a Conventional Refinance Conventional vs. FHA Requirements When you apply for a refinance through a conventional lender, you will have to meet the requirements that they have established for approval. Typically, lenders like you to have a really good credit score, in the 700 range at least but preferably higher. You also need to have a fairly low debt-to-income ratio, a stable job, and a good credit report. In addition to this, any asset you have will be marks in your favor. Each conventional lender has their own requirements that have to be met, but they are all fairly similar and they take the items mentioned above into account. If you are in...

3 Steps To Help You Refinance your Mortgage

For new homeowners, it is a step into the world of unknown territory after considering to refinance your mortgage. It can be quite jarring if you don’t know what they are doing. However, a good course of action from a good research plan will certainly make things easier. Find out why you should begin to refinance in the first place. Also, make sure that it’s a sensible decision. Here are a few things to keep in mind regarding your refinance method.   Did You Know Homeowners Can Still Refinance With No Equity? You’ll Never Believe How Easy It Is to Use a Refinance Calculator Smart Steps to Take When Refinancing Your Loan   What Are Some Things to Consider in a Conventional Refinance? What’s the reason for refinancing your mortgage in the first place? Do you have a good relationship with your lender? This may determine how much you’ll have to pay in upfront closing costs. Some lenders will want you to put a 20% down payment. This is quite expensive for a new homeowner and this may take a serious bite out of your current livelihood. If you’re an adult that just graduated college, you may want to get to your student loans right away. It’ll take some time to pay a high down payment for a home. On another hand, a lender may want in between 5-10% upfront. This gives you a little breathing room to do other things. There are advantages to paying a large amount upfront.   Pros and Cons of Choosing Federal Refinance Options Under FHA Guidelines Not only do you have new...

The Good and the Bad When Refinancing

The real estate market is a huge player in the nation’s economy, which means that a lot of money funnels through it to individuals, businesses, and corporations. To help maintain this success, advertisements beckon you to buy a new home, take out a new loan, refinance the existing home, etc., this isn’t necessarily a bad thing. We all benefit from an economy that is flowing in as well as out. But the question is, should you listen to those advertisements and get a refinance? Is it worth it? They claim it will save you money, so will it? There is good and bad to a refinance, as there are with any major financial decision, and after learning a bit about the good and the bad, you’ll be better equipped to make the successful choice. Refinance Options – What Are Your Needs? Smart Steps to Take When Refinance Your Loan 4 Things to Consider Before You Refinance Your Mortgage Why You May Want to Refinance When you refinance a home you take out a new loan on an existing property. This new loan pays off the old loan and you are left with different terms. When you take out a new loan the power goes back into your hands to some degree, meaning you can adjust the terms you are dealing with rather than being stuck in the terms you already have. For example, your original loan has an interest rate of 5.5% and a 30-year-loan term. That’s not bad, but the current rate you can qualify for is 4.5% and you know you can afford a shorter loan term....

Did You Know Homeowners Can Still Refinance With No Equity?

A home purchase is typically done for two reasons. First, a place to live and second, an investment. Like any investment, this purchase can sometimes go the wrong direction, leaving the homeowner struggling to meet the demands of a debt that is more than the asset is worth. When you find yourself in this situation you may realize that a refinance can help solve the problem you are dealing with. Unfortunately, too many homeowners think a refinance isn’t a possibility for them because there is no equity. But here is a thought you might want to entertain, ‘Can I still refinance my home with no equity?’ This thought may be the key to getting you into a mortgage you can manage. 5 Key Points to Know about a HARP Loan 4 Things to Note Before Choosing the HARP Program HARP and HAMP After the real estate market had plummeted a few years ago, the government implemented multiple programs to help people who lost equity and who ended up in a mortgage that was worth more than the house. These programs are specifically for people who had the mortgage before the crash, and they have been a source of relief for thousands of homeowners. The first of these programs is HARP, which stands for the Home Affordable Refinance Program. When you ask yourself ‘can I refinance my home with no equity?’ The answer is yes; they may be able to if you qualify for HARP. The Home Affordable Refinance Program is specifically geared toward homeowners who do not have existing FHA mortgages. They also cannot be late on their payments...

Let’s Get Down to the Bottom of You’re Refinance Options

For most homeowners there comes a point during the life of their loan where they start to entertain the idea of a refinance. They may have noticed that the interest rates have dropped, or they’ve built up equity and are thinking of putting it to good use. The questions that should be asked before the refinance is, why are you refinancing, will it be beneficial, and what are my refinance options? While your loan officer and lender will be able to give you all the details of the refinance, here is a look at why people refinance and what options are available for them. Refinance Programs for Every Need Why are you refinancing? This is the first question you should ask yourself because it’s going to determine the refinance program that you pick. For most homeowners the reason they refinance will fall in one of these categories. They want to pull out the equity and use it for other investments or debt consolidation. They want to reduce the interest rate and/or the monthly mortgage payment. They want to adjust the loan terms, switching from and ARM to a fixed mortgage or altering the amount of time required to pay off the loan. They have family issues that must be dealt with. They are falling behind on their mortgage and want to alter it to make the burden easier to handle. Granted, these aren’t the only reasons people refinance, but they are the most common. So where do you fall in this list? By deciding what you need out of a refinance, you’ll be better equipped to choose the best...

How are Homeowners Receiving Low Refinance Rates?

You always want to come out on top after picking a refinance option you believe will help your situation. You want to get in a situation where you want to obtain the lowest refinance rates, but don’t incur so many other costs as a result. You may have needs such as stabilizing your mortgage to get back on better footing financially outside of your house obligations, or you may want to have the choice to utilizing equity to improve other sections of your life. In any case, here are a few ways homeowners are receiving lower rates. How to Hit the Jackpot by Lowering your Rate 5 Awesome FHA Refinance Options You Need to Know About   What’s Your Motivation for Refinancing? We all have our individual reasons behind refinancing. Sometimes, this may not result in the lowest rates available but it will set us up for better financial stability down the line. You have to compromise a slightly higher refinance rate in order to get lower mortgage payments for a short period of time. However, you may find that this is the better solution to settle for a healthy medium. For example, if you were to apply for a federal streamline refinance, you may get the lowest refinance rate over an extended period of time that results in a higher mortgage balance. On the good side, you won’t have to wait a long time for your refinance request to be approved, unlike a conventional loan. Also, you won’t have to worry about a high level of credit or equity to go ahead with your plans. Look at the...

You’ll Never Believe How Easy It Is to Use a Refinance Calculator

In a hectic lifestyle, you always need a way to get things done a lot faster and more conveniently. FHA refinance calculator takes away all of the paperwork and confusion and puts forth all of the fees associated with a specific financial matter in one form. This is a great advantage because you can preview different refinance options presented by a number of lenders. You can utilize the calculator as a way of seeing what potential plans work for you. Here are some easy steps as you use the refinance calculator. Using a Refinance Calculator for Your FHA Loans Why Are Refinance Calculators Great For Your Mortgage? Why Should You Use a Refinance Loan Calculator?   Using the Calculator Helps in Refinancing FHA Loans   An established refinance company has a  mortgage calculator on their website to punch in the fees to your financial plan. You need a good lender that will help you in the process of federal refinancing. Always be aware of all fees and how this will affect your financial situation. You shouldn’t depend on just your lender. Why not have one form and one system that’s efficient enough to take in all costs associated with a refinance choice? Remember, it’s not about working hard, but working smarter to save you time, energy, and money. Why hiring a financial adviser to handle all of this information when you can do it yourself? For those that are just considering federal loans, this would be a good way to view the difference in fees associated with a federal refinance plan and a conventional refinance.   Find Plenty of...

The Secret to FHA No Costs Refinance

If a survey was given to Americans on how they felt about Congress over the past several years, the results would most likely not be favorable.  Whatever your affiliation may be, terms thrown around such as “a do nothing Congress” or “the worst Congress ever” cannot be limited to just one party.  Anyone who continuously watches the news, reads news articles, or listens to it on the radio focuses on one theme; Americans are not happy with today’s government. This is not meant to say that everyone is unhappy about one particular topic and demand that the government should rectify it.  This is meant to say that so many people have different things they value the most, so obviously the government cannot rectify everything.  However, it is equally important to state that the government has put forth programs designed to help the needs of certain individuals.  The Federal Housing Administration (FHA) has created programs for the purpose of providing types of loans that can help homeowners not only save money but keep their homes as well.  There are options to choose from, keeping in mind that the process of acquiring a new loan or refinance may not be easy. It is important to learn what this program was designed for and then see when would be the best time to secure this type of mortgage. What People are Saying About FHA Refinance & HARP How Should I Refinance My Home Under FHA? Yippy, FHA is Going to Refinance my Home! What is an FHA No Cost Refinance? If homeowners feel embarrassed to question a lender about what an FHA...

What People are Saying About FHA Refinance & HARP

The concept of FHA Home Affordable Refinance Program sounds quite believable due to the similarities of both FHA and HARP, but both are actually separate entities. HARP has nothing to do with federal loans, but rather comes from Sallie Mae and Freddie Mac loans. However, it is easy to see why some people may get confused with certain eligibility and regulations that are the same in each particular refinance service.  Below are some key details of similarities and differences regarding both federal loans as well as a Home Affordable Refinance Program. For Many, the HARP Program Has Been Homeowners Saving Grace 4 Things to Note Before Choosing the HARP Program   What is Home Affordable Refinance Program? First of all, you should know why HARP is beneficial. This was put forth during President Obama’s first term to help out homeowners who have a good mortgage record, but dwell in homes that are undervalued. The market crash of 2008 was the precursor to this type of program to help institute homeowners to cope with the tumbling rates. Eligibility for Home Affordable Refinancing requires your mortgage to have already been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Additionally, you cannot have chosen this type of refinancing prior unless you refinanced a Fannie Mae loan under this program during March-May, 2009.  Make sure your loan to value (LTV) ratio is greater than 80%. Most recently under the Desktop Underwriter Approval (DU), there are some companies that will allow you to refinance even at 150%. This is very different from most refinance companies who see you...
Should I Refinance?

Owning a home is great! Although owning a mortgage… Not so much. The great news is that with a mortgage you can refinance and save thousands. Although before jumping into it ask yourself the question “Should I Refinance?”.

Read this great resource that’ll help you decide when it’s a good time or not a good time to refinance your home.

Click Here > Should I Refinance?

Interest Rate Basics

So what’s the difference between interest rate and APR? Well, it’s pretty simple really. Although understanding what makes up an APR (Annual Percentage Rate) can make a huge difference in your monthly mortgage payment.

How Refinance Interest Rates and APR’s Work

How to Refinance

The basics are straightforward. You get a lender to pay off your old loan, you have now re-financed your mortgage and start making payments to your new lender (hopefully lower payments). Although, what is your motivation? Lower your payment, payoff your mortgage early, take another borrower off the loan?

Find Out How to Refinance Your Mortgage

Closing Costs Suck!

Yes it’s true! Closing costs in-deed do suck, so how can you know you’re not getting ripped off? Well, make sure to pay attention to the “Good Faith Estimate” when shopping for your mortgage.

Refinance Closing Costs and Fees You can Expect to Pay

Why so much for mortgage insurance?

That’s a good question, and everyone in the mortgage industry is asking the same question. Mortgage Insurance has taken a huge hit since the 2008 mortgage industry tank! Hopefully this article can help answer.

What Drives Your Refinance Rate Up

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